Investment banking giant Goldman Sachs crushed its fourth-quarter results this morning.
For Q4, EPS came in at $5.60 versus average Wall Street analysts' estimates of $3.66.
Revenue for the fourth quarter came in at $9.24 billion versus estimates of $7.83 billion.
Goldman's stock was last trading up more than 2.3% in the pre-market.
From Goldman's release [.PDF]:
The Goldman Sachs Group, Inc (NYSE: GS) today reported net revenues of $34.16 billion and net earnings of $7.48 billion for the year ended December 31, 2012. Diluted earnings per common share were $14.13 compared with $4.51 for the year ended December 31, 2011. Return on average common shareholders’ equity (ROE) was 10.7% for 2012.
Fourth quarter net revenues were $9.24 billion and net earnings were $2.89 billion. Diluted earnings per common share were $5.60 compared with $1.84 for the fourth quarter of 2011 and $2.85 for the third quarter of 2012. Annualized ROE was 16.5% for the fourth quarter of 2012.
Annual Highlights
- Goldman Sachs continued its leadership in investment banking, ranking first in worldwide announced and completed mergers and acquisitions for the year
- The firm ranked first in worldwide equity and equity-related offerings and common stock offerings for the year.
- Debt underwriting produced net revenues of $1.96 billion, which is the second best annual performance and the highest since 2007.
- Fixed Income, Currency and Commodities Client Execution generated net revenues of $9.91 billion, including strong results in mortgages and solid results in credit products and interest rate products.
- Book value per common share increased approximately 11% to $144.67 and tangible book value per common share increased approximately 12% to $134.06 compared with the end of 2011.
- The firm continues to manage its liquidity and capital conservatively. The firm’s global core excess liquidity was $175 billion as of December 31, 2012. In addition, the firm’s Tier 1 capital ratio under Basel 1was 16.7% and the firm’s Tier 1 common ratio under Basel 1was 14.5% as of December 31, 2012.
“While economic conditions remained challenging for much of last year, the strengths of our business model and client franchise, coupled with our focus on disciplined management, delivered solid performance for our shareholders,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer. “The firm’s strategic position provides a solid basis on which to grow and generate superior returns.”
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